The Government has just issued Decree 161/2026/ND-CP dated May 15, 2026, stipulating the base salary and bonus regime for cadres, civil servants, public employees and armed forces.
Accordingly, from July 1, 2026, the base salary will increase to 2,530,000 VND/month. This adjustment not only helps increase income for cadres, civil servants, and public employees because salaries are calculated according to salary coefficients and the base salary level, but also affects many other contributions and benefits such as social insurance, health insurance, allowances, operating fees and living expenses according to regulations.
Social insurance contribution and benefit levels increase according to base salary
According to the 2024 Law on Social Insurance and the 2025 Law on Employment, for employees receiving salaries according to the regime prescribed by the State, the salary used as a basis for paying compulsory social insurance, health insurance and unemployment insurance is calculated according to positions, titles, ranks, grades, military ranks and allowances such as position allowances, seniority beyond the frame, professional seniority and reserve difference coefficients (if any).
Because this group of subjects has salaries directly linked to the base salary, when the base salary increases, the social insurance, health insurance, and unemployment insurance contributions also increase accordingly. At the same time, the benefits of enjoying insurance regimes in the long term are also improved.
Some allowances calculated according to the base salary will also increase correspondingly when this salary level is adjusted upwards.
For example, one-time maternity allowance for female workers who give birth or adopt children under 6 months old is calculated as 2 times the base salary at the time of birth or child adoption.
In addition, postpartum health care allowances, occupational accident and disease allowances are also items related to the base salary level.
According to the 2024 Law on Social Insurance, the salary used as a basis for social insurance contributions is at least equal to the base salary and at most equal to 20 times the base salary.
In addition, Article 85 of the 2024 Law on Social Insurance stipulates that the level of funeral allowance for relatives of pensioners who pass away is 10 times the reference level in the month that person passed away.
Currently, the reference level is determined by the base salary. Therefore, when the base salary increases in 2026, the funeral allowance will also increase correspondingly.
Health insurance premiums are also adjusted
According to Decree 188/2025/ND-CP, the monthly health insurance contribution level of students is determined to be 4.5% of the reference level, while the current reference level is equal to the base salary.
The state budget supports at least 50% of this contribution level, and localities can provide additional support depending on actual conditions.
For household health insurance participants, the contribution level is also calculated based on the base salary. Specifically, the first person pays at 4.5% of the base salary; the second, third, and fourth people pay at 70%, 60%, 50% of the first person's contribution; from the fifth person onwards, they pay at 40%.
Therefore, when the base salary increases from July 1, 2026, the health insurance contribution level of many groups of subjects will also be adjusted to increase accordingly.
